Almonty Industries Enters Pivotal Production Phase at Flagship Mine

Almonty Industries has achieved a critical operational milestone at its premier Sangdong project in South Korea, signaling a definitive shift from development to active mining. The company has successfully deposited its first ore on the Run-of-Mine (ROM) pad, an event that carries significant implications for the global tungsten supply chain in the medium term.

The commencement of ore delivery, reported on December 16, represents the final major step before commercial production begins at the Sangdong mine. Historically the world's largest tungsten operation, the facility located approximately 200 kilometers southeast of Seoul was shuttered for over three decades. Its closure followed Chinese market interventions in the early 1990s that depressed prices to unsustainable levels.

Lewis Black, Almonty's Chief Executive Officer, described the initial ore placement as a strategic turning point in the company's mission to bolster global tungsten supply chains. Sangdong is positioned to play a central role in reducing the reliance of the United States, the European Union, and South Korea on supply chains dominated by China, which currently controls an estimated 80% of worldwide tungsten output. This vulnerability was underscored in early 2025 when Beijing introduced tungsten export restrictions in response to U.S. tariffs.

Key Details of the Sangdong Restart:

• Reserve life expectancy exceeding 45 years
• Approximately 100,000 tonnes of tungsten-bearing rock already stockpiled for processing plant testing
• Installation of Finnish machinery for crushing and processing
• A three-phase development plan: tungsten production, molybdenum recovery, and oxide refining
• A state-guaranteed minimum price for tungsten produced within South Korea

Fortifying Supply Agreements and Operational Leadership

Almonty has established an informal agreement whereby 45% of Sangdong's production is slated for the U.S. market. Additional volumes are designated for South Korean consumers, who have until now been entirely dependent on Chinese imports. This move aligns with a planned U.S. Department of Defense import prohibition set for 2027, which will ban procurement of tungsten from Chinese sources.

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The company has reinforced its operational focus with the appointment of retired Brigadier General Steven L. Allen as Chief Operating Officer, effective December 1. His role will center on optimizing material flows at both the Sangdong operation and Almonty's existing Panasqueira mine in Portugal.

U.S. Expansion and Strengthened Financial Position

Further solidifying its North American strategy, Almonty completed the acquisition of the Gentung Browns Lake Tungsten Project in Montana, U.S., in November. This transaction establishes a direct operational footprint in the United States.

Financially, the company's liquidity has improved markedly following its Nasdaq listing. A subsequent upsized capital raise led by BofA Securities has provided Almonty with cash reserves of $111.6 million. This robust financial position mitigates the risk of near-term equity dilution and allows for a focused execution of its commissioning plans.

Commissioning Progress and Infrastructure Readiness

Technical teams have concluded all preparatory work at Sangdong, including geological surveys, ground stabilization, load testing, and equipment installation. The ROM pad is now fully operational, with haul routes and machinery already running under conditions that simulate full production.

The commissioning of the crushing, grinding, and flotation circuits is proceeding according to schedule, supporting a gradual ramp-up to full production capacity. An official opening ceremony is planned for after the Korean winter season, which will formally mark the transition into regular commercial production.